There are many reasons why I think SNE will go down.
1.SNE run up from $74 to $97 1/4, a 31% rally. Today, the highest only $96 3/4, it's a double top for me. So, normally we will see at least a 33% retracement. It's around $89 1/2.
2.Nikkei was up 360 points before profit taking in the last session and closed only up 22 points. Not good for uptrend. Nikkei was up from 14,000 to 15,840 only in one week. Based on 33% retracement, we may see Nikkei around 15,200's in coming days.
3.Higher on oil price is not good for Japan's economy. Higher on oil price also will make investors, especially in US, think inflation is on the corner. As we know, there will be an FOMC at the end of this month. I will not be surprise if FED will higher our interest rate.
4.Many investors are waiting for DOW at 10,000. I am expecting a major profit taking at that level.
Based on all of these, I guess we may see SNE go back to $75-77.
JMO.
MM |
